Maker (MKR) Surpasses 200 EMA and Faces Profit Booking!
Maker token is the utility cum governance token of MakerDAO and Maker Protocol, based on the Ethereum blockchain to control and manage DAI stablecoin. DAI stablecoin closely monitors the US dollar, which in turn maintains the confluence of all the stablecoins and cryptocurrencies.
Since the Maker allows voting rights for matters concerning the governance of DAI stablecoin in an indirect format, the demand for this token rises whenever the USD value rises because of the supply-demand chain reaction.
MKR token has a market capitalization of $905,609,779 with close to 97% liquidation of the entire token supply. Standing at the 52nd spot, this token essentially manages the 13th-ranked DAI stablecoin market capitalization, which is a multi-fold asset. The outlook for the MKR token remains bright because of the increased usage of the US dollar and its counterparts in the international trade and business community.
Maker price action showcases strong buying, but the previous resistance around $1074 has reignited. The profit booking at this level brings decent gains for previous holders, with retracement possible from the lower bands. Since the recent profit booking stat began yesterday, the fallback of price to the 100 EMA curve and below cannot be ruled out.
Coming to the technical analysis of the MKR token, the value hitting the low of $578 was surprising. However, the token hit a marvelous gain based on the peak value of October 9; the outlook for this token indicates profit booking. RSI trading above 80 levels is a clear mark of restraint.
The MACD indicator in this short interval has started to move upwards, while a huge selling volume is witnessed on daily charts. MKR touched a huge gain but closed the day with little gains. Today’s story is different, as MKR lost marginal value from its peak. Both 50 and 100 EMA curves started to move upwards, indicating stronger sustainability of this achieved value. Click here to read a detailed analysis of the MKR token.
The sentiment might be short-lived because of the strong profit booking scenario that is gradually developing. Taking support above the 100 EMA could help this token gain further value to the 200 EMA curve. Based on historical price action for MKR, the resistance would be placed at $1074, which is decently above the latest trading value of $928.
On weekly price action, the candlestick pattern remained mildly short of reaching the peak value of $1150, but the strong upside movement showcased in such short intervals has created the predicament of reaching the market peaks in coming months once MKR consolidates above the recent levels.